COID: MAXIMUM EARNING AMOUNT INCREASE & ANNUAL RETURN FORMS REVISED


Department of Labour Legislation update

COID: MAXIMUM EARNING AMOUNT INCREASE & ANNUAL RETURN FORMS REVISED

Government Gazette notice no. 449 on 15 April 2016


Occupational Injuries and Diseases: Maximum Earning Amount Increase

Department of Labour published Government Gazette notice no. 449 on 15 April 2016 in respect of an increase in the maximum amount of earnings. Effective date is 1 April 2016. The prescribed amount under Section 83(8) of the Compensation for Occupational Injuries and Diseases Act No 130 of 1993 (COIDA) has been increased to R377 097 per annum.

Occupational Injuries and Diseases: Return of Earnings Form revised

A revised return of earnings form (W.As.8) in terms of the Compensation for Occupational Injuries and Diseases Act has been drawn up and published on 15 April 2016 in Government Gazette notice no.444.  The previous form and rules have been repealed with immediate effect.

 

All employers are still encouraged to file the return online on the website of the Department of Labour.

To view the new W.As.8 form and rules, please follow this link

[Announcement] — Interest-rate change: the official rate of interest (for calculating fringe benefits) increases by 0.25%


Interest-rate Change

 

When an employee obtains a loan from his employer (and either no interest is payable or the interest payable is less than the ‘official rate of interest’) then the difference between the two amounts is calculated at the official rate of interest.

[tweetthis remove_twitter_handles=”true” remove_url=”true” remove_hidden_hashtags=”true” remove_hidden_urls=”true”]Due to recent Repo rate increase by 0.25% (to 7%) on 18 March 2016, the revised official rate of interest is 8% — effective 1 April 2016[/tweetthis]

The amount is calculated at an interest rate determined by the employer. This is a taxable fringe benefit, which must be processed and indicated on the employee’s tax certificate — using the “general code” 3801.

The official rate of interest is defined as the rate of interest that is equal to the RSA repurchase rate (“Repo rate”) plus 100 basis points (1%).

The official rate of interest changes from the first day of the new month, following the date on which the Repo rate change comes into effect.

Repo Rate Change

Therefore, owing to the most recent Repo rate increase of 0.25% (to 7%) on 18 March 2016, the revised official rate of interest is 8% — effective 1 April 2016.

[Department of Labour NOTICE] — To All Employers Registered With Compensation Fund

[tweetthis remove_twitter_handles=”true” remove_hidden_hashtags=”true” remove_hidden_urls=”true”]Return of Earnings (RoE) submission deadline has been extended to 31 May 2016[/tweetthis]


To All Employers Registered With Compensation Fund —


The Return of Earnings (RoE) submission deadline has been extended to 31 May 2016.

Click here to download all details required for accurate
submission: Department of Labour — Guideline Document

RoE Advert

Which employee-related records must I keep in order to sleep peacefully at night?

An organisation has a legislated obligation to keep employee-related records

South African legislation makes it very clear that you, the employer, have an obligation to keep employee-related records. You need to make sure that the paperwork is accurate, on time, and available to your employees, to you company-representatives, and to any government representative who may request these during an inspection/audit.

Therefore, knowing exactly where everything is filed (whether it be manually or electronically filed), no doubt makes prudent company sense.

Two methods of filing exists: the ‘old-fashioned’ manual filing method, and the more contemporary electronic document filing method.

Allow me to proceed by discussing which employee-related records need to be filed, and who may request audit-access to these filed documents that ought (at all times) to reside in your organisation’s secure document archives.

What needs to be filed: BCEA-related?

A good start is to to turn to the Basic Conditions of Employment Act 75, of 1997 (BCEA), which informs us of the statutory requirement to have a written contract of employment. This contract ought to include the following details:

  1. the full name and address of the employer;
  2. the name and occupation of the employee, or a brief description of the exact type of work/duties which the employee was hired to perform;
  3. the place of work, and, where the various locations where the employee is required (or permitted) to perform his/her duties;
  4. the date on which the employment contract commenced;
  5. the employee’s ordinary “hours of work” and “days of work”;
  6. the employee’s wage (alternatively, the contract to stipulate the rate and method to be used in order to calculate his/her wages);
  7. the rate/s of pay for overtime work;
  8. any other cash payments that the employee is entitled to;
  9. any payment ‘in kind’ that the employee is entitled to, as well as to clearly state the monetary equivalent-value of this ‘in kind’ method of payment;
  10. how frequently remuneration will be paid (i.e. frequency of payment intervals);
  11. any deductions to be made from the employee’s remuneration;
  12. the exact categories/types of leave which the employee is entitled to;
  13. the period of notice required in order to terminate the employment contract, or if employment is for a limited/specified period of time: the date upon which employment contract ceases;
  14. a description of any bargaining council or sectoral determination that governs further regulations specific to the type of business/organisation which the employee works at;
  15. any period of employment (with a previous employer) that may need to be factored into the employee’s new employment contract;
  16. a list of any other documents that form part of the contract of employment, whilst also indicating where the employee may (reasonably easily) access a copy of each of these documents.

Once an employee’s service with the organisation ends, record of his/her contract of employment must be archived for a period of three years after their leaving.

More filing needed: all hours worked and remuneration paid?

The organisation is compelled to keep a comprehensive set of records of all employees’ monthly hours worked and full details of remuneration paid to each and every employee:

  1. the employer’s name and address;
  2. the employee’s name and occupation;
  3. the period for which the payment is made;
  4. the employee’s remuneration in money; (e) the amount and purpose of any deduction made from the remuneration;
  5. the actual amount paid to the employee; and
  6. if relevant to the calculation of that employee’s remuneration
    • the employee’s rate of remuneration and overtime rate;
    • the number of ordinary and overtime hours worked by the employee during the period for which the payment is made;
    • the number of hours worked by the employee on a Sunday or public holiday during that period;

This aforementioned information must appear on each employee’s payslip. Every single employee must be given a copy of their payslip (which may be done during working hours or within 15 minutes after the employee’s shift has ended).

The organisation is compelled to keep archival record of these documents for a period of 5 years.

Lastly, an inspector (that has been legally and duly appointed in terms of the BCEA) may enter the organisation’s premises at any time, without a warrant or notice, and proceed with a compliance audit. It is incumbent upon the organisation and its representatives to prove that all employment-related records are accurate. Dependent upon the type of contraventions that may be discovered by the inspector, the BCEA provisions for a punitive fine of up to R 500 per employee (and/or a period of imprisonment for up to three years).

[tweetthis remove_twitter_handles=”true” remove_hidden_hashtags=”true” remove_hidden_urls=”true”]No filing records: contraventions discovered by an inspector, may attract a fine of up to R 500 per employee… [/tweetthis] Consequently, prudence seems to lie in preparedness: Paymaster recommends that you ensure that your employee-related records are always duly filed (manually, or electronically) and are in order for possible inspection/audit.

Thankfully, Paymaster (after many years of professional service to its clients) has gained the experienced capacity to help make your organisation’s record-keeping an easy, effort-free enjoyment. With an automated payslip process, Paymaster keeps all your essential and valuable employee-records online (safely and securely stored in the Cloud). These records are readily and easily available (at the click of a button) at any time.

Sleep easy at night, without worrying about that BCEA inspector’s ‘knock on the door’!

Further great news: you may elect to process your payroll, Paymaster can do it all for you, on your behalf — a fully outsourced and comprehensive solution for your organisation.

Whatever you decide to choose, be assured that Paymaster has your organisation’s employee-related record-keeping needs fully covered. Ultimate peace-of-mind for you!

5 Hidden payroll and HR productivity killers

According to Dr. John Sullivan, one of the most respected voices in Human Resources research, there are five levels of contribution that HR departments can make to a business. If you’re eyeing a spot in the boardroom, it’s critical to position your team in that top tier, where HR transcends an administrative, functional role and becomes what Sullivan calls a strategic “business unit”—using HR skills and tools to forward the company’s big picture objectives, like acquiring a larger market share.

 

Other leaders in the field agree with Dr. Sullivan, including Len Jillard, Chief People Officer at McDonald’s. “I firmly believe in being an HR business partner,” he says. “If you’re just going to be a transactional HR leader, you are not providing the full value you can to the business.” Here, “transactional” corresponds to the first and second tiers in Sullivan’s model—the time an HR professional spends on relatively routine tasks, like answering employee questions or explaining a benefits package.

Transactional HR isn’t a dirty word—it’s a necessary and important part of the role. But as Jillard says, you can’t “just” be that. An enterprising CHRO may no longer be content with tiers one and two.

When we say the HR role is changing, we really mean that it is expanding. Sure, it’s possible to climb ever higher, but you need solid footing at the top—which means that you can’t bypass levels one through four on your quest to reach the top tier of Sullivan’s contribution model.

Let’s recap: there’s nothing getting crossed off of your job description and science still hasn’t figured out a way to add an extra hour (or ten!) to the day. Clearly, your only option is to figure out where you can save time on tasks you do routinely. That’s easier said than done—and takes time in and of itself—so we’ve done the legwork for you. After consulting the most recent research, we’ve uncovered the top five payroll and HR productivity killers. Take a look to see if they’re plaguing your department—and then start climbing those tiers.

1. Employee management

HR professionals report that employee management—answering questions, mediating disputes, or handling discipline and recognition—takes around 71 percent of their time. If you follow Sullivan’s model, that means the vast majority of every working day is spent operating in and around tiers one and two, quite a long way from the top.

Investing time in your hiring process can pay off tenfold down the line, if you approach it with the right mindset. Instead of hiring based on competency alone, consider the other important question of cultural fit. You’ll find you spend far less time resolving disputes or meting out disciplinary measures.

2.  Recruiting

Of course, you can only hire the best if they apply to your organization. Modern methods have revolutionized recruitment—it’s far more common for a candidate to see a job posting on Facebook than in a newspaper, for example—and made it less time-consuming: how long does it take to craft a Tweet compared to a classified ad? Still, HR professionals report spending 42 percent of their time on recruiting alone.

If you want to expand your staff roster, look to the existing one. Ask employees to recommend potential candidates—referred hires have a higher retention and satisfaction rates. Bonus: it takes less time for referred candidates to be hired and onboarded.

3.  Manual or double data entry

No one values strong communication like the HR department—and not just for the reasons you’d expect. Human Resources makes use of cutting edge technology, but when all of that software doesn’t ‘talk’ to each other, users are forced to fall back on manual or double data entry—work that we here at Paysavvy consider a special kind of Hell. Even though HR has gone high tech, professionals still find themselves manually transferring data from a payroll journal entry to their accounting software, or moving updated employee information from their Human Capital Management system to their payroll module.

Fortunately, the answer is simple. When you’re shopping around for software, make sure to keep your options open. Look for flexible systems that offer numerous, varied integrations, and say so long to the painstaking, headache-inducing, mind-numbing work of manual data entry.

4.  Tracking hours, vacation time, and holiday requests

Tracking hours can be a fraught business. How often does it happen that an employee believes he or she  has worked longer than you’ve recorded? Likewise, holiday requests can make for one hectic HR department. Come summer and the end of year, you’re inevitably inundated with queries from employees wanting to check how much time they have available and see whether or not they can leave the office for an extended period.

The solution? Go high tech. Biometric clocks scan an employee’s fingerprint and register when he or she starts and leaves work. That information is directly relayed to cloud-based payroll servers, eliminating the need for manual data entry. In the same vein, some software allows employees to submit vacation requests digitally or check how many days off they have remaining—which means you’ll spend far less time answering routine questions.

5.  Staying compliant

Between overtime regulations and employment legisaltion—both of which seem to be ever changing—staying compliant with payroll legislation can seem like a full-time job. When the alternative is waiting on hold with a government department, Googling answers seems like a solid alternative—until the department of labour comes knocking and you realize that pRiNcEsS_PaYrOlL23 really shouldn’t have been the foremost authority in that forum.

Most HR and Payroll professionals make compliance a priority, but searching for answers and then verifying them is a time-intensive productivity killer. Look for software that comes with personalized 24/7 support—you won’t waste time on hold and you can be confident in the advice you receive.

In conclusion

These days, CEOs and CFOs are asking more of their HR departments. It’s possible to rise to the occasion, but only if existing work is expedited. After all, even superstar employees have a limited number of hours in the day. With this list of productivity killers, you can make the most of your daily eight and position yourself as a strategic business leader, worthy of a seat at the table.

August 14, 2015 | Chelsea Pratt – www.paysavvy.com

JUDGMENT ON THE INTERPRETATION OF THE "DEEMING PROVISION" – SOLE OR DUAL:

The Labour Court handed down judgment on September 8th 2015 in a highly anticipated interpretation ruling relating to the recent amendments to the Labour Relations Act (LRA).

Kirsten Caddy Senior Associate in the Employment practice at Cliffe Dekker Hofmeyr (CDH),  explains, “The judgment provides clarity on the interpretation of the “deeming provision” contained in section 198A of the LRA, which provides that the client of a temporary employment service (TES) is deemed to be the employer of TES employees who earn less than the earnings threshold (currently R205 433.30 per annum), and who have been placed at the client for more than three months.The judgment confirmed that the client does not become the sole employer. Rather, the Court held that the TES continues to be the employer.”

Caddy says that has been much debate as to whether the deeming provision means that the client of a TES becomes the sole employer or the dual employer of the TES employees.  Prior to today’s judgment, a number of decisions emanating from the CCMA and bargaining councils have declared the deeming provision to mean that the client becomes the sole employer of the TES employees after three months.

“In Assign Services v CCMA and others (8 September 2015), the court was tasked with determining whether the commissioner had erred in his interpretation of the deeming provision. The commissioner, too, found that the deeming provision meant that the client of the TES became the sole employer of the TES employees who earn less than the earnings threshold, and who had been placed at the client for more than three months,” Caddy explains.

“The court stated that the true issue for determination was whether the TES continues to be the employer of the TES employees (notwithstanding the application of deeming provision) and, therefore, is concurrently vested with the rights/obligations and powers/duties generated by the LRA.

“The court found that the TES continues to be the employer of the TES employees, even after the application of the deeming provision. There is no reason, in principle or practice, why the TES should be relieved of its statutory rights and obligations towards the TES employees merely because the client acquires a parallel set of such rights and obligations.  The deeming provision does not invalidate the contract of employment between the TES and TES employee or derogate from its terms,” explains Caddy.

Aadil Patel, Director and Head of the CDH Employment practice notes, “The court further made the important finding that the deeming provision is expressly made only to operate for the purposes of the LRA and that it therefore serves to amplify or expand the protections afforded to employees and not to substitute the TES employee’s protections vis-à-vis the TES with protections vis-à-vis the client.”

“The current legal position is that TES employees remain the employees of the TES and, by virtue of the deeming provision, can now assert their rights against the clients of the TES as well. The finding of the Labour Court therefore supports the “dual employer” approach and TES employees do not transfer to the client as the sole employer,” explains Patel.

“The Labour Court has clarified the interpretation of the deeming provision to the satisfaction of TES and their client’s alike. However, this is likely not to be end of the debate around this very contentious amendment to the LRA,” he adds.

Pros and cons of social media at work

Pros and cons of social media at work

by Nicci Whitear-Nel

Social networking platforms such as Facebook, Myspace, Twitter and LinkedIn have grown phenomenally and many employees maintain an almost permanent online presence. It is easy to spend hours checking and updating internet accounts. When one considers the fact that access to the workplace internet facilities also allows employees to indulge in non-work related browsing, it is easy to see why employers may be hesitant to grant unrestricted right of access to their workplace internet facilities.
© r0b - Fotolia.com© r0b – Fotolia.com

Irresponsible use of the workplace internet by employees can dramatically reduce their productivity. In addition, the sharing of data such as video files uses up large amounts of bandwidth which compromises the efficiency of the system for business purposes. Further, there is an increased threat of infiltration by viruses or malware. When employees make inappropriate comments or spread offensive material via the internet, the employer may even find itself liable in terms of civil or criminal law.

However, technology has changed the way people communicate with each other, how they stay abreast of developments and share information and how they do business. There are therefore unprecedented advantages to be obtained from allowing employees access to the internet and even social networking platforms while at work. In addition, employees have rights to privacy, which must be respected and many have an expectation of access to the internet as a workplace perk.

It is thus crucial that employers know how to balance the needs, rights and interests of the business as well as those of the employees.

Discussions around social networking at the workplace will be canvassed in detail at this year’s 28th Annual Labour Law Conference, taking place at the Sandton Convention Centre in Johannesburg from 4-6 August 2015. This annual conference is jointly facilitated by the Institute of Development and Labour Law at the University of Cape Town, the Centre for Applied Legal Studies at the University of Witwatersrand and the School of Law at the University of KwaZulu-Natal, in partnership with LexisNexis South Africa.

Should I be paying tax?

Should I be paying tax?

It’s something we all wish we did not have to pay and it is one question  that comes up time and time again. There a many questions the average employee or even employer asks and many of them one would assume have obvious answers but tax does not have obvious answers and it is dangerous to hazard a guess when discussing tax and answering questions such as laid out below.

Question:

I earn a basic wage of R1720.00 per week and I have deductions.

My deductions are:

UIF = R17.00

Provident Fund = R111.00

Council Levy = R2.50

Union Fee = R14.05

Sick Fund = R25.80

Funeral Fund = R1.80

Should I be paying tax?

Answer:

R73,650 is the annual tax threshold for the current year and this means anyone who earns less than this will not pay tax.

R73,650 equates to R6137.50 a month or about R1416 per week.

If you earn R1720 per week this is above the weekly threshold and thus you quality to be taxed on the earnings value only. There could well be a few deductions that could bring the amount down and thus below threshold, all the deductions in the example above are tax deductions and the table amount will remain at R1720.

The answer to the question in a nutshell is that PAYE should be deducted from your earnings.

To get a real grip on your Payroll you need Paymaster Payroll

 

New trends descend on HR & payroll

New trends descend on HR & payroll

By , Surveys Editorial Project Manager at ITWeb.
Johannesburg, 2 Jul 2015

Employees are the heart of any business. This is especially true for mid-size enterprises, which must attract and retain the best talent if they are to hold their own against much larger competitors.

So says Anton van Heerden, MD of Sage HR & Payroll, who notes if enterprises are to take full advantage of their talent, they have to be able to manage it effectively and efficiently.

“This is why we’re seeing so many mid-size and large enterprises invest in powerful, simple and flexible HR management solutions to streamline their practices, improve efficiency and future-proof their businesses,” says Van Heerden.

Sage VIP and Synergy Group, in partnership with ITWeb, are conducting an online HR & Payroll Survey to gain valuable insight and perspective into the current strategies within South African organisations.

“It is important for organisations to seriously consider their HR and payroll automation strategies and the aim of the survey is to determine how South African organisations are faring when it comes to what motivates them to implement, upgrade or replace their HR and payroll solutions,” says Van Heerden.

He notes the survey is to also establish current market penetration of HR and payroll solutions within businesses.

Ashley Regenass, CEO of Synergy Group, adds: “This survey is needed to establish what the current uptake of automated and integrated HR and payroll is in South Africa.”

According to Van Heerden, there are quite a few trends that are being witnessed within the HR and payroll sphere such as compliance, payroll fraud, cloud computing, employee self-service and outsourcing.

He points out the regulatory and tax environment are becoming more complex. This trend is expected to continue, especially with pension fund reform on the cards, the possible introduction of national health insurance, and the Davis Commission’s reevaluation of SA’s entire tax system.

“More organisations are falling prey to payroll fraud. Many organisations are looking to the cloud to cut operational and capital costs. Employee self-service solutions give employees more convenience and finally outsourcing routine monthly payroll tasks allows organisations to focus on their core business more easily.”

It is important for organisations to seriously consider their HR and payroll automation strategies, says Anton van Heerden, MD for Sage HR & Payroll.

It is important for organisations to seriously consider their HR and payroll automation strategies, says Anton van Heerden, MD for Sage HR & Payroll.

When asked what challenges organisations face with regards to HR and payroll, Regenass advises that too many mid-sized businesses still store HR data in silos.

“Outdated HR systems with loose or no integration with accounting and ERP [enterprise resource planning] systems create inefficiencies and hamper visibility into business trends. Gaining visibility of HR performance is a growing challenge as well as statutory reporting,” says Van Heerden.

“A good solution will automate routine administrative tasks which helps companies to comply with regulations. Electronic processes also produce a wealth of data which enables HR to make better decisions.”

Regenass notes an effective HR and payroll system helps businesses to better manage their mobile workforce as well as improve efficiencies.

“An effective HR and payroll system will streamline compliance and help companies stay on top of the dynamic and changing HR landscape,” he adds.

Concludes Van Heerden: “By automating routine paperwork, HR departments will be able to focus more on issues such as training and development, performance management, employee retention, developing a positive business culture, and alignment of the HR strategy with the business strategy. This translates into a business advantage.”

 

Paymaster makes for happier holidays

Payroll software makes for happier holidays

It may only be June, and the festive season may seem a long time away but it is well worth considering how important your payroll system is to you and how much better your holiday will be and can be with the right Payroll solution. Paymaster will make your holiday that bit happier… here is why….

If you are using the right software for your payroll and human resources, you may be preparing for a stress-free December holiday knowing that your business is under control wherever you are.
And if it doesn’t, here are five reasons you need to select a software partner that could make it easier for you to enjoy a productive yet restful festive season, says Madelein van der Watt, development manager at Sage Pastel Payroll & HR.

Take the pain out of managing leave applications

Over December, many of your employees will want to take leave. Keeping track of who’s available and who is not can be a chore once you have more than a handful of employees. Why not use employee self-service (ESS) to let them apply for leave online from any Internet-connected computer or mobile device? It makes life easier for them and for you. You’ll be able to sign off leave forms online and have electronic records at your fingertips. That will make it easier to plan who will man the phones and respond to urgent customer requests over the holidays.

Simplify leave pay

With the end of the year in sight, companies need to do the complex calculations necessary to determine their employees’ correct leave pay. Doing the sums manually or on spreadsheets is a time-consuming exercise, and getting them wrong could mean breaching the Basic Conditions of Employment Act (BCEA). These days, any business can afford to roll out a modern payroll and HR solution that automates this task.

No more interrupting questions about available leave

Your payroll software should make your employees more self-sufficient. ESS systems should give them access to information, such as how much leave they have due, without asking the HR department. The payroll software automatically calculates accruals and reduces it with days taken to show an accurate balance to an employee. Managers will also see the current leave balance when employees apply for leave, making it easier and quicker to decide whether to approve the application or not. Employees and managers can plan December holidays better, knowing at all times exactly how much leave is available.

Automate wherever possible

In this world of instant-gratification, your software solution should help you to be more efficient and save time. The right software will allow you to execute multiple transactions, such as processing a production bonus or commission by only using one screen. Over shutdown periods, putting your entire workforce on leave should be quick and easy using global update features.

Get the help you need

Your software provider should be there to support you whenever you need it. So don’t be afraid to ask for help. Attending training or workshops yourself or even having a back-up admin person trained and ready to help will certainly alleviate the stress of processing leave and bonuses. Another good option is to get expert on-site assistance from a consultant. That peace of mind is one of the best presents you can give yourself this festive season.